Monthly Report on Credit and Liquidity Programs and the Balance Sheet

Overview

Recent Developments

The Overview section of this report highlights developments in the operations of the Federal Reserve’s credit and liquidity programs and facilities since last month’s report, and presents data describing changes in the assets, liabilities, and total capital of the Federal Reserve System as of April 25, 2012.

FRBNY Sells $9.9 Billion in Face Value of Maiden Lane III LLC Assets

On April 26, 2012, the Federal Reserve Bank of New York (FRBNY) announced that it had sold $7.5 billion in face value of assets from the Maiden Lane III LLC portfolio to a consortium consisting of Barclays Capital Inc. and Deutsche Bank Securities Inc., following a competitive bid process that was announced by the FRBNY on April 18, 2012. This transaction resulted in a substantial reduction of the Maiden Lane III LLC portfolio and a corresponding paydown on the senior loan to Maiden Lane III LLC extended by the FRBNY. Additional information about the sale is available at www.newyorkfed.org/newsevents/news/markets/2012/an120426.html and www.newyorkfed.org/markets/ml3_sec_offerings.html.

On May 10, 2012, the FRBNY announced that it had sold $2.4 billion in face value of assets from the Maiden Lane III LLC portfolio to Merrill Lynch, Pierce, Fenner & Smith Inc. following a competitive bid process that was announced on May 4, 2012. This transaction resulted in further reductions of the Maiden Lane III LLC portfolio and the senior loan extended to Maiden Lane III LLC by the FRBNY. Additional information about the sale is available at www.newyorkfed.org/newsevents/news/markets/2012/an120510.html and www.newyorkfed.org/markets/ml3_sec_offerings.html.

Federal Reserve Conducts Small-Value TDF Auction

On May 14, 2012, the Federal Reserve conducted an auction of $3 billion of 28-day term deposits through the Term Deposit Facility (TDF). The ongoing small-value TDF offerings are a matter of prudent planning and have no implications for the near-term conduct of monetary policy. Additional information about term deposits, auction results, and future small-value offerings is available through the TDF Resource Center at www.frbservices.org/centralbank/term_deposit_facility.html.

Federal Reserve System Selected Assets, Liabilities, and Total Capital

Table 1 reports selected assets and liabilities and total capital of the Federal Reserve System and presents the change in these components over the past month and since this time last year.

Note: Unaudited. Components may not sum to totals because of rounding.* Less than $500 million. Return to table1. Face value. Return to table2. Guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Current face value, which is the remaining principal balance of the underlying mortgages. Does not include unsettled transactions. Return to table3. Securities loans under the overnight facility are off-balance-sheet transactions. These loans are shown here as a memo item to indicate the portion of securities held outright that have been lent through this program. Return to table4. Current face value. Includes commitments associated with outright purchases, dollar rolls, and coupon swaps. Return to table5. Total of primary, seasonal, and secondary credit. Return to table6. Dollar value of the foreign currency held under these agreements valued at the exchange rate to be used when the foreign currency is returned to the foreign central bank. Return to table7. Book value. Return to table8. As of April 25, 2012, TALF LLC had purchased no assets from the FRBNY. Return to table9. Fair value, reflecting values as of March 31, 2012. Fair value reflects an estimate of the price that would be received upon selling an asset if the transaction were to be conducted in an orderly market on the measurement date. Fair values are updated quarterly. Return to table